You Cannot Fool All of the Markets All of the Time

"You can fool all of the people some of the time, and some of the people all of the time, but you cannot fool all of the people all of the time" -Abraham Lincoln (most likely)

After a recent minor pullback on the major indices we saw President Trump spend most of the weekend touting various stimuli, namely $2,000 tariff rebate checks and 50-year mortgages. Clearly, the President has no stomach for any and all pullbacks in equities as a government shutdown deal now seems more likely. 

While the Nasdaq is surging today on all of the aforementioned headlines it is worth noting that, for the time being, the QQQ ETF remains in a near-term corrective structure since October 29th. Should this rally quickly lose steam early this week the case for diminishing returns on all of these federal government interventions and stimuli becomes more viable. We have a ton of growth stocks reporting earnings this week, starting with RGTI tonight (NVDA is next week), and the CPI inflation print may or may not come out on Thursday morning, pending the shutdown issues. 

Given the immediate snapback rally in equities today it seems as though the Presient and his Administration can simply talk up markets any time he wishes--That clearly seems to be the case this year since April, as the constant barrage of soothing sound bites nearly always sends stocks/futures higher at all hours of the day and night. 

Be that as it may, the precious metals and miners are surging after a fairly benign pullback of late.

Many people had adamantly called the top to gold last month. But today's gaps higher across the board in the precious complex smack of a bullish breakaway gap. Case in point: Silver (below on the SLV ETF weekly chart) and the precious miners are leading the gold metal itself today, usually a bullish risk-on sign for the sector. 

Also note the SLV weekly tight bull flag, highlighted below.